Question:

What is grace period for payments?

Answer:

The grace period for payments is the time allowed by the financial institution to the consumer to make the payments due without incurring penalty fees.

Grace Period for Mortgage Payments

Most mortgage loans have a 15-day grace period for monthly mortgage payments. After that, late fees will be charged even if the mortgage payment arrived only one day after the grace period.

Avoid making payments after the grace period for mortgages.

Your credit report will be blemished if the mortgage payment was received 30-days late. Payments received within the grace period do not affect your credit score.

Grace Period for Credit Cards

The grace period is different for credit cards.

While grace period for mortgage payments is the time the borrower may post their payment without being penalized, credit cards grace period is the time from making a credit card purchase to charging interest on the spent amount. At the same time, cash withdrawal from your credit card may not have a grace period for credit card payments.

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